German Stocks Advance as Investors Await Fed Meeting

June 17 (Bloomberg) -- German stocks advanced for a second
day as investors awaited this week’s U.S. Federal Reserve
meeting for signals on stimulus measures.

Volkswagen AG gained 2 percent after Bank of America Corp.
reiterated its buy rating on the shares. Solarworld AG jumped 18
percent after a report that Qatar Solar Technologies will buy a
stake in the company.

The DAX Index added 1.1 percent to 8,215.73 at the close of
trading in Frankfurt. The equity benchmark lost 1.5 percent last
week on concern that the Fed will start to taper its bond-purchase program in September. The broader HDAX Index rose 1
percent today.

“Once again investors are awaiting decisions from this
week’s Fed meeting,” Marcus Silbe, an analyst at Close Brothers
Seydler Research AG in Frankfurt, wrote in an e-mail. “Most
traders expect that the Fed will continue to calm the market,
which in turn would lower the high volatility seen over the last
few weeks. While the macro data is mixed, the assumption is that
the Fed will not leave its path of stimulus.”

The Fed will hold its two-day policy meeting this week,
with Chairman Ben S. Bernanke scheduled to speak after the
central bank’s decision on June 19.

Group of Eight leaders gather for a two-day summit in
Northern Ireland today, focusing on the benefits of a trade
agreement with the U.S. as they seek a path to economic growth
while curbing their debt.

Volkswagen Gains

Volkswagen, Europe’s biggest automaker, advanced 2 percent
to 162.3 euros. Bank of America said the carmaker’s earnings
momentum has reached an inflection point amid high confidence
and an upbeat outlook for China.

Solarworld, the world’s fourth-largest solar-panel maker,
jumped 18 percent to 81.1 euro cents. Qatar Solar Technologies
will buy a stake of about 30 percent in the company for 30
million euros ($40 million), with most of the remaining shares
going to creditors, Sueddeutsche Zeitung reported, citing
unidentified people in the financial industry.

Solarworld’s debt will be cut to 400 million euros from 1
billion euros, according to the report.

ProSiebenSat.1 Media AG advanced 2.6 percent to 33.22
euros, its highest prices since February 2001. Chief Executive
Officer Thomas Ebeling said he wanted the broadcaster to remain
independent after the exit of its two biggest shareholders,
Sueddeutsche Zeitung reported, citing an interview.